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December Trading Volume on DEX Reaches ATH

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Trading volumes on both the DEX and CEX exchanges recorded record numbers in December, with DEX reaching $320.5 billion and CEX reaching its highest level since May 2021. What has driven this tremendous growth?

The cryptocurrency market is showing positive signals, as trading volumes on decentralized exchanges (DEXs) hit new record highs in December.

According to the data, total trading volume on the DEX in December reached $320.5 billion, surpassing the previous record of $299.6 billion set in November.

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Trading Volumes on DEX. Source: The Block

Among DEX exchanges, Uniswap holds the lead with trading volume reaching more than $103 billion in December. PancakeSwap followed close behind with $72 billion.

Raydium, the largest DEX exchange on the Solana platform, recorded a trading volume of $54.6 billion, ranking third in the ranking. Aerodrome and Curve are also prominent names on this list.

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Trading Volumes on CEX. Source: The Block

Not only DEXs, centralized exchanges (CEX) also saw significant growth in trading volume. Specifically, spot trading volume on CEX exchanges in December reached the highest level since May 2021. Compared to October, spot trading volume in November increased by 137%, indicating that market sentiment is gradually becoming more positive.

The data showed that total spot trading volume in December reached $2.78 trillion. Of these, Binance has the largest market share with nearly $950 billion. Other major exchanges such as Crypto.com, Upbit, Bybit and Coinbase also recorded trading volumes in the hundreds of billions of dollars in December.

 
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Market share of CEX exchanges. Source: The Block

The concurrent growth of both DEX and CEX is driven by many factors:

  • Market Volatility:The sharp fluctuations in the price of Bitcoin and other cryptocurrencies in recent times have attracted the interest of traders, creating many opportunities for profit.
  • The evolution of DeFi: The DeFi ecosystem is increasingly maturing with many exciting new products and services, attracting users to participate and use DEX exchanges.
  • Improved service on CEX: CEX exchanges have been working to improve liquidity, trading tools and user experience, helping to attract users back.
  • Optimistic Psychology: The pro-cryptocurrency candidate event for the re-election of the US President has created an optimistic mood in the market, encouraging investors to engage in trading.

The growth of trading volume on both DEX and CEX is a welcome signal for the cryptocurrency market. However, investors should be aware that this market is still fraught with risks and caution should be exercised before making investment decisions.